Lundin makes gas find offshore Malaysia

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STOCKHOLM, Sweden, Nov. 21 (UPI) -- Swedish energy company Lundin Petroleum announced it made a natural gas discovery in a well off the coast of Malaysia.

Lundin said it made a natural gas discovery in a vertical well drilled in shallow waters off the Malaysian coast. Drilling in the Tembakau-1 well encountered a gas pay measuring a net 196 feet over five intervals.

"We are hopeful this discovery has the potential to be commercial on a stand-alone basis given its close proximity to existing gas infrastructure and the strong demand for gas in peninsular Malaysia," Lundin President Ashley Heppenstall said in a statement.

Lundin made a series of oil and natural gas discoveries in the country earlier this year.

Malaysia ranks third, behind China and India, in the Asia-Pacific region in terms of oil reserves. The country as of January 2011 had proven oil reserves of around 4 billion barrels. Natural gas reserves were estimated at 83 trillion cubic feet, the U.S. Energy Information Administration reports.

The company said additional work would determine the recoverable resource range at Tembakau-1.